If a government is liable for payment of special assessment debt in the event of default by the property owners,then an agency fund must be used to account for the proceeds of the special assessment.

Question

Quizplus · Accepted Answer

An agency fund is used when the government is not liable for the debt. If the government is liable, the debt should be accounted for in a governmental fund, such as a debt service fund.

If a Government Is Liable for Payment of Special Assessment